HAR §12-11-69. Requirements for self-insurance

An applicant for self-insurance shall: (1) Deposit with the State director of finance, and keep on deposit, securities which are obligations of the United States, or any other state, Hawaii or any of its counties, provided that the securities were issued pursuant to law and the faith and credit of the issuing governmental agency is pledged for their payment, in an amount acceptable to the director, but in no event less than $2,000. Securities deposited shall be registered in the name of "Director of Labor and Industrial Relations, State of Hawaii". Interest paid on securities deposited with the director of finance will be remitted to the applicant for whose account they are deposited, as long as the applicant complies with the law and with this chapter; or, (2) In lieu of securities and at the discretion of the director, file with the director of finance the bond of a surety company authorized to do business in this State, in a manner and penal sum acceptable to the director. Each surety bond shall be undertaken and may be enforced in the name of "Director of Labor and Industrial Relations, State of Hawaii", or (3) Upon furnishing satisfactory proof to the director of the employer's solvency and financial ability to pay the temporary disability benefits herein provided, no insurance or security or surety bond shall be required, and the employer shall make payments directly to the individual employees, as they become entitled to receive the same under the terms and conditions of the statute. [Eff 5/11/81] (Auth: HRS §392-91) (Imp: HRS §392-41)